Core Viewpoint - The focus on "zero-carbon parks" and "zero-carbon factories" at the Sichuan Provincial Two Sessions highlights the importance of green and low-carbon development in achieving national carbon neutrality goals. The company Zhongzi Technology is actively contributing to this initiative through its innovative solutions and strategic partnerships [1][2]. Group 1: Company Strategy and Initiatives - Zhongzi Technology aims to align with the national "dual carbon" strategy by emphasizing "technological innovation + results transformation" as its dual driving force. The company plans to increase R&D investment to develop key technologies and provide comprehensive solutions for zero-carbon parks [1][3]. - The company has successfully integrated a "catalysis +, energy storage +" industrial layout, focusing on reducing pollution, saving energy, and lowering carbon emissions. It has established a comprehensive solution for zero-carbon parks and a smart energy management platform [6][9]. - Zhongzi Technology has made significant contributions to carbon reduction, with projects like a 2.1 MW distributed photovoltaic system that generates approximately 727,800 kWh annually, reducing CO2 emissions by about 390 tons [4][6]. Group 2: Industry Context and Growth Potential - The "14th Five-Year Plan" emphasizes the development of distributed energy and the construction of zero-carbon factories and parks, with the green low-carbon industry in China estimated to reach approximately 11 trillion yuan, with potential for significant growth in the next five years [3]. - The establishment of national-level zero-carbon parks is seen as a critical pathway for regional and national low-carbon transformation, with Sichuan's Yibin Lingang Economic and Technological Development Zone being recognized as a key site for this initiative [3][4]. - The demand for environmental catalysts and energy storage solutions is expected to grow as global environmental protection efforts intensify, presenting both opportunities and challenges for the industry [9].

Group 1: Market Trends - The cyclical sectors, including basic chemicals, petroleum and petrochemicals, and building materials, have seen significant gains, with increases exceeding 3% as of January 20 [1] - On January 21, cyclical sectors continued to rise, with non-ferrous metals up over 1%, and steel, automotive, petroleum and petrochemicals, and basic chemicals all recording positive performance [1] - The National Development and Reform Commission's deputy director indicated a commitment to implement policies to support reasonable price recovery, which may drive market sentiment [1] Group 2: Investment Opportunities - Ten stocks in cyclical sectors are predicted to see net profit growth of tenfold by 2026, with the highest growth forecasted for Zhongzi Technology at over 51 times this year [2] - Tianyin Holdings is expected to achieve a net profit growth of over 42 times, benefiting from the AI replacement trend and national subsidies [2] - Delong Laser is projected to see a 36-fold increase in net profit, focusing on high-end industrial laser processing equipment [2] Group 3: Company Specifics - Ganfeng Lithium, with eight institutional ratings, is a leading lithium producer, planning to achieve an annual production capacity of no less than 600,000 tons of lithium products by 2030 [3] - Yujing Co., with six institutional ratings, specializes in processing equipment for hard materials and is expected to benefit from upgrades in the consumer electronics industry and expansion in the photovoltaic sector [3]

Group 1 - The implementation of the "Private Economy Promotion Law" supports private enterprises in participating in national strategic projects and encourages investment in emerging industries and technological upgrades [1][2] - As of April this year, China has cultivated 605,000 technology and innovation-oriented SMEs and over 490,000 high-tech enterprises, with private enterprises accounting for over 92% of national high-tech enterprises [2] - The law aims to alleviate financial pressures on private enterprises by providing funding support and facilitating access to major projects and technology research initiatives [2][3] Group 2 - The law encourages private enterprises to strengthen foundational and cutting-edge research, develop key technologies, and promote the integration of technological and industrial innovation [3] - Companies like Zhongzi Technology and Zongheng Co. are significantly increasing their R&D investments, with Zhongzi's R&D expenditure reaching 110 million yuan in 2024, a 26.13% increase, and Zongheng's R&D investment at 92.44 million yuan, a 27.22% increase [3][4] - Zongheng Co. is focusing on transforming its drone technology towards a tool-based and platform-based model, integrating AI and cloud platforms to enhance efficiency in various applications [4] Group 3 - Hai Liang Co., a leader in the copper processing industry, emphasizes the importance of technological innovation for strategic upgrades and seeks government support for industry-academia collaboration [4][5] - The company has developed an "order class" model for training blue-collar workers and technical personnel, highlighting the need for government-led initiatives to facilitate industry-wide cooperation in talent development [4]

Core Views - The report outlines the continuous supervision work conducted by Shenwan Hongyuan Securities for Zhongzi Technology Co., Ltd. after its listing, emphasizing compliance with relevant regulations and the establishment of a robust supervision system [1][2]. Continuous Supervision Work - Shenwan Hongyuan has established and effectively implemented a continuous supervision system, including a work plan [2]. - The institution has signed a rights and obligations agreement with Zhongzi Technology, which has been filed with the Shanghai Stock Exchange [2]. - Continuous supervision includes regular communication, site inspections, and due diligence to ensure compliance with laws and regulations [2][3]. Compliance and Governance - The institution supervises Zhongzi Technology's compliance with laws, regulations, and commitments made by its management [3][4]. - The company has been urged to establish effective internal control systems and governance structures [3][4]. - Information disclosure practices are closely monitored, ensuring that all documents submitted to regulatory bodies are accurate and complete [4][5]. Financial Performance - For the fiscal year 2024, Zhongzi Technology reported a revenue of CNY 1,564,932,497.13, reflecting a 1.35% increase from the previous year [12]. - The net profit attributable to shareholders was a loss of CNY 26,218,438.81, a significant decline of 161.95% compared to the previous year [12]. - The company’s cash flow from operating activities was negative at CNY -156,880,149.19, indicating financial strain [12]. Research and Development - The company increased its R&D expenditure by 26.13% to CNY 109,693,350.33, representing 7.01% of its total revenue [17]. - During the reporting period, Zhongzi Technology applied for 47 new domestic patents, enhancing its innovation capabilities [17][18]. Market Position and Risks - The environmental catalyst industry is characterized by intense competition, with significant market share held by foreign companies [9]. - The company faces risks related to core competitiveness, operational challenges, and fluctuations in precious metal prices, which are critical for its production [6][8][9]. - The transition to stricter emission standards and the growth of the new energy vehicle market may impact the demand for traditional fuel vehicle catalysts [10][11]. Use of Proceeds - The company raised CNY 1,407,189,683.51 from its IPO, with funds allocated for various projects, including the development of new catalysts and enhancing production capabilities [20][21]. - As of December 31, 2024, the company ensured compliance with regulations regarding the use of raised funds, with no violations reported [20][21].